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FreightCar America, Inc. Reports Second Quarter 2025 Results

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FreightCar America (NASDAQ: RAIL) reported its Q2 2025 results, delivering revenues of $118.6 million with 939 railcar deliveries. The company achieved a gross margin of 15.0%, expanding 250 basis points year-over-year. Net income reached $11.7 million ($0.34 per share), including a $51.9 million benefit from a valuation allowance release.

The company secured new orders for 1,226 railcars valued at $106.9 million and ended Q2 with a strong backlog of 3,624 units worth $316.9 million. FreightCar America reaffirmed its FY2025 guidance, projecting deliveries of 4,500-4,900 railcars and revenue of $530-595 million.

The company maintained positive operating cash flow for the fifth consecutive quarter, generating $8.5 million in operating cash flow and $7.9 million in adjusted free cash flow.

FreightCar America (NASDAQ: RAIL) ha comunicato i risultati del secondo trimestre 2025, registrando ricavi per 118,6 milioni di dollari con 939 consegne di carri ferroviari. L'azienda ha raggiunto un margine lordo del 15,0%, in crescita di 250 punti base rispetto all'anno precedente. L'utile netto è stato di 11,7 milioni di dollari (0,34 dollari per azione), includendo un beneficio di 51,9 milioni di dollari derivante dalla revoca di una riserva di valutazione.

La società ha ottenuto nuovi ordini per 1.226 carri ferroviari del valore di 106,9 milioni di dollari e ha chiuso il secondo trimestre con un solido portafoglio ordini di 3.624 unità per un valore di 316,9 milioni di dollari. FreightCar America ha confermato le previsioni per l'intero anno 2025, prevedendo consegne tra 4.500 e 4.900 carri e ricavi compresi tra 530 e 595 milioni di dollari.

La società ha mantenuto un flusso di cassa operativo positivo per il quinto trimestre consecutivo, generando 8,5 milioni di dollari di flusso di cassa operativo e 7,9 milioni di dollari di flusso di cassa libero rettificato.

FreightCar America (NASDAQ: RAIL) reportó sus resultados del segundo trimestre de 2025, alcanzando ingresos de 118,6 millones de dólares con 939 entregas de vagones ferroviarios. La compañía logró un margen bruto del 15,0%, aumentando 250 puntos básicos interanual. La utilidad neta fue de 11,7 millones de dólares (0,34 dólares por acción), incluyendo un beneficio de 51,9 millones de dólares por la liberación de una provisión por valoración.

La empresa aseguró nuevos pedidos por 1.226 vagones valorados en 106,9 millones de dólares y cerró el segundo trimestre con una sólida cartera de pedidos de 3.624 unidades por un valor de 316,9 millones de dólares. FreightCar America reafirmó su guía para el año fiscal 2025, proyectando entregas entre 4.500 y 4.900 vagones y unos ingresos de 530 a 595 millones de dólares.

La compañía mantuvo un flujo de caja operativo positivo por quinto trimestre consecutivo, generando 8,5 millones de dólares en flujo de caja operativo y 7,9 millones de dólares en flujo de caja libre ajustado.

FreightCar America (NASDAQ: RAIL)� 2025� 2분기 실적� 발표하며 1� 1,860� 달러� 매출� 939대� 철도 차량 인도� 기록했습니다. 사� 전년 대� 250 베이시스 포인� 상승� 15.0%� 총이익률� 달성했습니다. 순이익은 1,170� 달러(주당 0.34달러)�, 5,190� 달러� 평가충당� 환입 효과가 포함되어 있습니다.

사� 1,226대� 신규 주문� 1� 690� 달러� 체결했으�, 2분기 � 기준 3,624대, 3� 1,690� 달러 상당� 강력� 수주잔고� 보유하고 있습니다. FreightCar America� 2025 회계연도 가이던스를 재확인하�, 4,500~4,900대� 차량 인도와 5� 3,000만~5� 9,500� 달러� 매출� 예상하고 있습니다.

사� 5분기 연속 긍정적인 영업 현금 흐름� 유지하며, 850� 달러� 영업 현금 흐름790� 달러� 조정 자유 현금 흐름� 창출했습니다.

FreightCar America (NASDAQ : RAIL) a publié ses résultats du deuxième trimestre 2025, enregistrant un chiffre d'affaires de 118,6 millions de dollars avec 939 livraisons de wagons. La société a réalisé une marge brute de 15,0%, en hausse de 250 points de base par rapport à l'année précédente. Le bénéfice net a atteint 11,7 millions de dollars (0,34 dollar par action), incluant un avantage de 51,9 millions de dollars lié à la reprise d'une provision pour dépréciation.

L'entreprise a obtenu de nouvelles commandes pour 1 226 wagons d'une valeur de 106,9 millions de dollars et a clôturé le deuxième trimestre avec un carnet de commandes solide de 3 624 unités d'une valeur de 316,9 millions de dollars. FreightCar America a confirmé ses prévisions pour l'exercice 2025, anticipant des livraisons comprises entre 4 500 et 4 900 wagons et un chiffre d'affaires entre 530 et 595 millions de dollars.

La société a maintenu un flux de trésorerie opérationnel positif pour le cinquième trimestre consécutif, générant 8,5 millions de dollars de flux de trésorerie opérationnel et 7,9 millions de dollars de flux de trésorerie disponible ajusté.

FreightCar America (NASDAQ: RAIL) meldete seine Ergebnisse für das zweite Quartal 2025 und erzielte Umsätze von 118,6 Millionen US-Dollar bei 939 ausgelieferten Eisenbahnwagen. Das Unternehmen erreichte eine Bruttomarge von 15,0%, was einem Anstieg von 250 Basispunkten im Jahresvergleich entspricht. Der Nettogewinn belief sich auf 11,7 Millionen US-Dollar (0,34 US-Dollar je Aktie), einschließlich eines Vorteils von 51,9 Millionen US-Dollar aus der Auflösung einer Bewertungsrückstellung.

Das Unternehmen sicherte sich Neubestellungen für 1.226 Eisenbahnwagen im Wert von 106,9 Millionen US-Dollar und beendete das zweite Quartal mit einem starken Auftragsbestand von 3.624 Einheiten im Wert von 316,9 Millionen US-Dollar. FreightCar America bestätigte seine Prognose für das Geschäftsjahr 2025 und erwartet Lieferungen von 4.500 bis 4.900 Eisenbahnwagen sowie Umsätze von 530 bis 595 Millionen US-Dollar.

Das Unternehmen erzielte zum fünften Mal in Folge einen positiven operativen Cashflow und generierte 8,5 Millionen US-Dollar operativen Cashflow sowie 7,9 Millionen US-Dollar bereinigten freien Cashflow.

Positive
  • Gross margin expanded by 250 basis points to 15.0%
  • Strong order intake of 1,226 new railcars valued at $106.9 million
  • Backlog increased by 300 units to 3,624 railcars worth $316.9 million
  • Fifth consecutive quarter of positive operating cash flow at $8.5 million
  • Adjusted EBITDA margin improved to 8.4% from 8.2% year-over-year
Negative
  • Revenue declined 19.5% year-over-year to $118.6 million
  • Railcar deliveries decreased by 19% to 939 units from 1,159 units in Q2 2024
  • Market uncertainty earlier in the year caused delays in order activity

Insights

FreightCar America delivered solid Q2 results with margin expansion despite lower volume, demonstrating pricing power and operational improvements amid challenging market conditions.

FreightCar America's Q2 results reveal a strategic focus on margin improvement over volume, with gross margins expanding to 15% (up 250 basis points year-over-year) despite deliveries dropping 19% to 939 railcars. This approach yielded positive outcomes as the company maintained gross profit near year-ago levels at $17.8 million, down only slightly from $18.4 million.

The company's order intake was particularly strong with 1,226 new railcars valued at $106.9 million, increasing their backlog to 3,624 units worth $316.9 million - up approximately 300 units sequentially. This represents nearly 9 months of production at current delivery rates, providing solid visibility.

Cash generation continues to strengthen, with $8.5 million in operating cash flow and $7.9 million in adjusted free cash flow marking their fifth consecutive cash-positive quarter. This consistent cash generation creates financial flexibility for their strategic investments in tank car capabilities.

The $11.7 million reported net income ($0.34 per share) requires careful interpretation as it includes a substantial $51.9 million one-time benefit from a valuation allowance release, largely offset by a $47.6 million non-cash adjustment from warrant liability valuation due to share price appreciation. Excluding these items, adjusted net income was $3.8 million ($0.11 per share).

Looking ahead, management has maintained their full-year guidance despite market uncertainty, projecting 4,500-4,900 railcar deliveries (representing 7.7% growth at midpoint), revenue of $530-$595 million, and adjusted EBITDA of $43-$49 million (7.0% growth). This confidence, despite earlier market hesitation, suggests they expect stronger second-half performance.

The company's strategic shift toward higher-margin products, operational flexibility, and investment in tank car capabilities positions them well for the anticipated replacement cycle in the industry. Their ability to remain agile in rebuilds and conversions has become a competitive advantage in capturing incremental demand in a dynamic market environment.

Delivered Gross Margin of 15%, Expansion of 250 Basis Points
Operating Cash Flow of $8.5 Million and Adjusted Free Cash Flow of $7.9 Million
Strong Order Intake Driven by Operational Flexibility, Reaffirmed Full Year Guidance

CHICAGO, Aug. 04, 2025 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America� or the “Company�), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today reported results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights

  • Revenues of $118.6 million, compared to $147.4 million in the second quarter of 2024, with railcar deliveries of 939 units compared to 1,159 units in the prior year period
  • Gross margin of 15.0% with gross profit of $17.8 million, compared to gross margin of 12.5% with gross profit of $18.4 million in the second quarter of 2024
  • Net income of $11.7 million, or $0.34 per share, and Adjusted net income of $3.8 million, or $0.11 per share, reflecting a $51.9 million benefit from a valuation allowance release, partially offset by a $47.6 million non-cash adjustment from the change in warrant liability due to share price appreciation
  • Adjusted EBITDA was $10.0 million, representing a margin of 8.4%, compared to $12.1 million and a margin of 8.2% in the second quarter of 2024
  • Received new orders for 1,226 railcars within the quarter valued at $106.9 million
  • Ended the quarter with a backlog of 3,624 units valued at $316.9 million, up approximately 300 units from prior quarter, reflecting strong order activity and healthy demand

“In the second fiscal quarter, we delivered on our commercial excellence initiatives across the business, supported by strong order intake and healthy customer demand,� said Nick Randall, President and Chief Executive Officer of FreightCar America. “We increased utilization across our four production lines, delivered improved productivity, and benefited from a richer product mix from disciplined pricing. Our ability to remain agile and responsive to customer needs continues to be a key differentiator, particularly in rebuilds and conversions, enabling us to capture meaningful opportunities in a dynamic market.�

Randall continued, “While broader market uncertainty earlier in the year delayed some order activity, we believe the underlying fundamentals point to a meaningful replacement cycle ahead. As that takes shape, our agile manufacturing presence positions us well to capture incremental demand and grow our share. At the same time, we continue to advance our growth strategy by investing in our tank car capabilities, which we expect will strengthen our cost position and support long-term value creation.�

Fiscal Year 2025 Outlook

The Company has reaffirmed outlook for fiscal year 2025 as follows:

Fiscal 2025 OutlookYear-over-Year Growth at Midpoint
Railcar Deliveries4,500 � 4,900 Railcars7.7%
Revenue$530 - $595 million0.6%
Adjusted EBITDA1$43 - $49 million7.0%

1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA guidance due to the inherent difficulty in forecasting and quantifying adjustments necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to such adjustments, including warrant liability and non-core operating items, could affect future GAAP results.

Mike Riordan, Chief Financial Officer of FreightCar America, added, “We’re pleased to reaffirm our full-year guidance, supported by strong margin performance and continued commercial execution across the business, with order activity supporting our healthy backlog. In addition, this quarter marked our fifth consecutive quarter of positive operating cash flow, reflecting the consistency and sustainability of our cash generation engine. Our focus on working capital discipline and operational efficiency has positioned us well to maintain momentum and invest in growth opportunities as we deliver strong performance in the second half of the year.�

Second Quarter 2025 Conference Call & Webcast Information

The Company will host a conference call and live webcast on Tuesday, August 5, at 11:00 a.m. (Eastern Time) to discuss its second quarter 2025 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call. Teleconference details are as follows:

  • August 5, 2025
  • 11:00 a.m. Eastern Daylight Time
  • Phone: 1-877-407-0789 or 1-201-689-8562
  • Webcast access:

An audio replay of the conference call will be available beginning at 3:00 p.m. (Eastern Time) on Tuesday, August 5, 2025, until 11:59 p.m. (Eastern Time) on Tuesday, August 19, 2025. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13754875. An archived version of the webcast will also be available on the FreightCar America Investor Relations website.

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit .

Forward-Looking Statements

This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or plans that are “forward-looking statements� as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse geopolitical, economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion; delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers (including recent United States tariffs imposed or threatened to be imposed on China, Canada, Mexico and other countries and any retaliatory actions taken by such countries); and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This press release includes measures not derived in accordance with generally accepted accounting principles (“GAAP�), such as EBITDA, Adjusted EBITDA, Adjusted net income (loss), Adjusted EPS, Free cash flow and Adjusted free cash flow. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.

Investor Contact:

FreightCar America, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except for share data)
(Unaudited)
June30,
2025
December31,
2024
Assets
Current assets
Cash, cash equivalents and restricted cash equivalents$61,353$44,450
Accounts receivable, net of allowance for credit losses of $131 and $47, respectively16,20412,506
VAT receivable6,2433,851
Inventories, net107,10275,281
Assets held for sale629
Prepaid expenses and other current assets13,1228,314
Total current assets204,024145,031
Property, plant and equipment, net28,25430,107
Right of use asset operating lease2,2002,423
Right of use asset finance lease38,67545,081
Deferred income taxes53,6711,024
Other long-term assets1,269550
Total assets$328,093$224,216
Liabilities and Stockholders� Deficit
Current liabilities
Accounts and contractual payables$89,404$49,574
Accrued payroll and other employee costs5,9556,286
Accrued warranty1,6652,389
Customer deposits17,611
Deferred revenue8,556
Current portion of long-term debt2,8752,875
Lease liability finance lease, current8341,256
Other current liabilities11,4119,889
Total current liabilities129,75580,825
Long-term debt, net of current portion104,991105,540
Warrant liability131,061136,319
Accrued pension costs1,2031,073
Lease liability operating lease, long-term2,3642,645
Lease liability finance lease, long-term41,23346,678
Other long-term liabilities9481,409
Total liabilities411,555374,489
Stockholders� deficit
Common stock222221
Additional paid-in capital71,57269,404
Accumulated other comprehensive income3,236721
Accumulated deficit(158,492)(220,619)
Total stockholders� deficit(83,462)(150,273)
Total liabilities and stockholders� deficit$328,093$224,216


FreightCar America, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except for share and per share data)
(Unaudited)
Three Months EndedSix Months Ended
June30,June30,
2025202420252024
Revenues$118,623$147,416$214,913$308,474
Cost of sales100,802128,986182,698278,641
Gross profit17,82118,43032,21529,833
Selling, general and administrative expenses10,1148,51020,63716,003
Litigation settlement(3,214)(3,214)
Operating income7,70713,13411,57817,044
Interest expense(4,382)(1,847)(8,718)(4,238)
(Loss) gain on change in fair market value of Warrant liability(47,630)1125,258(15,541)
Other income (expense)3,296(725)3,157(739)
(Loss) income before income taxes(41,009)10,67411,275(3,474)
Income tax (benefit) provision(52,688)2,497(50,852)(80)
Net (loss) income$11,679$8,177$62,127$(3,394)
Net (loss) earnings per common share - basic$0.36$0.12$1.89$(0.41)
Net (loss) earnings per common share - diluted$0.34$0.11$1.79$(0.41)
Weighted average common shares outstanding � basic31,793,74630,641,19331,727,90330,235,876
Weighted average common shares outstanding � diluted33,398,33032,277,50633,603,62730,235,876


FreightCar America, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June30,
20252024
Cash flows from operating activities
Net income (loss)$62,127$(3,394)
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:
Depreciation and amortization3,0462,810
Non-cash lease expense on right of use assets1,5721,436
(Gain) loss on change in fair market value for Warrant liability(5,258)15,541
Stock-based compensation recognized2,7011,526
Deferred income taxes(52,647)(823)
Other non-cash items, net5,6901,835
Changes in operating assets and liabilities:
Accounts receivable(3,698)(6,407)
VAT receivable(2,397)
Inventories(32,807)63,723
Accounts and contractual payables41,164(40,066)
Income taxes payable, net(665)(4,949)
Lease liability(1,899)(1,790)
Customer deposits17,6118,709
Other assets and liabilities(13,218)(6,276)
Net cash flows provided by operating activities21,32231,875
Cash flows from investing activities
Purchase of property, plant and equipment(938)(2,269)
Proceeds from sale of assets held for sale, net of selling costs585
Net cash flows used in investing activities(353)(2,269)
Cash flows from financing activities
Deferred financing costs(1,336)
Borrowings on revolving line of credit26,595
Repayments on revolving line of credit(56,010)
Repayments on term loan(1,438)
Employee stock settlement(487)(40)
Financing lease payments(805)(1,341)
Net cash flows used in financing activities(4,066)(30,796)
Net increase (decrease) in cash and cash equivalents16,903(1,190)
Cash, cash equivalents and restricted cash equivalents at beginning of period44,45040,560
Cash, cash equivalents and restricted cash equivalents at end of period$61,353$39,370
Supplemental cash flow information
Interest paid$4,047$1,930
Income taxes paid$3,018$4,207
Change in unpaid construction in process$295$(210)


FreightCar America, Inc.
Reconciliation of (Loss) Income before taxes to EBITDA(1) and Adjusted EBITDA(2)
(In thousands)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Loss) income before income taxes$(41,009)$10,674$11,275$(3,474)
Depreciation & Amortization1,5501,4143,0462,810
Interest Expense, net4,3821,8478,7184,238
EBITDA(35,077)13,93523,0393,574
Change in Fair Value of Warrant (a)47,630(112)$(5,258)15,541
Litigation Settlement (b)-(3,214)-(3,214)
Stock Based Compensation7617662,7011,526
Other, net (c)(3,296)725(3,157)739
Adjusted EBITDA$10,018$12,100$17,325$18,166


(1)EBITDA represents earnings before interest, taxes, depreciation and amortization. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry. In addition, our management uses EBITDA to evaluate our operating performance. The calculation of EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall performance of the company’s business. EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider EBITDA in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of EBITDA is not necessarily comparable to that of other similar titled measures reported by other companies.
(2)Adjusted EBITDA represents EBITDA before the following charges:
(a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
(b) During the second quarter of 2024, the Company recorded a litigation settlement related to a dispute with a former lessee of our railcars.
(c) During the second quarter of 2025, the Company recognized other income related to a tax credit received.

We believe that Adjusted EBITDA is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EBITDA in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.
Reconciliation of Net (loss) income and Adjusted net income(1)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
Net (loss) income$11,679$8,177$62,127$(3,394)
Change in Fair Value of Warrant (a)47,630(112)(5,258)15,541
Litigation Settlement (b)-(3,214)-(3,214)
Stock Based Compensation7617662,7011,526
Release of Valuation Allowance (c)(51,872)-(51,872)-
Accrued Dividends on Series C Preferred Stock (d)-(4,427)-(8,664)
Other, net (e)(3,296)725(3,157)739
Total non-GAAP adjustments(6,777)(6,261)(57,586)5,928
Income tax impact on non-GAAP adjustments (f)(1,060)1,555905(1,890)
Adjusted net income$3,842$3,471$5,446$644


(1)Adjusted net income represents net income (loss) before the following charges:
a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
b) During the second quarter of 2024, the Company recorded a litigation settlement related to a dispute with a former lessee of our railcars.
c) During the second quarter of 2025, the Company released the majority of the valuation allowance in the United States on federal and state deferred tax assets.
d) Represents Series C Preferred stock dividends accrued during the period. All accrued preferred share dividends were paid concurrent with redemption of the preferred shares outstanding on December 31, 2024.
e) During the second quarter of 2025, the Company recognized other income related to a tax credit received.
f) Income tax impact on non-GAAP adjustments per share represents the tax impact of thepresented adjustments on the Company’s income tax provision calculation.

We believe that Adjusted net income is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted net income is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted net income in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted net income is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.
Reconciliation of diluted EPS and Adjusted EPS(1)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
Diluted EPS$0.34$0.11$1.79$(0.41)
Change in Fair Value of Warrant (a)$1.43$-$(0.16)$0.51
Litigation Settlement (b)-(0.10)-(0.11)
Stock Based Compensation0.020.020.080.05
Release of Valuation Allowance (c)(1.55)-(1.54)-
Other, net (d)(0.10)0.02(0.09)0.02
Total non-GAAP adjustments pre-tax per-share(0.20)(0.06)(1.71)0.47
Income tax impact on non-GAAP adjustments per share (e)(0.03)0.050.03(0.06)
Adjusted EPS$0.11$0.10$0.11$0.00


(1)Adjusted EPS represents diluted EPS before the following charges:
a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
b) During the second quarter of 2024, the Company recorded a litigation settlement related to a dispute with a former lessee of our railcars.
c) During the second quarter of 2025, the Company released the majority of the valuation allowance in the United States on federal and state deferred tax assets.
d) During the second quarter of 2025, the Company recognized other income related to a tax credit received.
e) Income tax impact on non-GAAP adjustments per share represents the tax impact of thepresented adjustments on the Company’s income tax provision calculation.

We believe that Adjusted EPS is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EPS is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EPS in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EPS is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCarAmerica,Inc.
Reconciliationof Cashflowsprovidedbyoperatingactivities,Freecashflow(1)andAdjustedfree cash flow(2)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
Cash flows provided by operating activities$8,528$57,197$21,322$31,875
Purchase of property, plant and equipment(608)(1,303)(938)(2,269)
Free cash flow7,92055,89420,38429,606
Accrued dividends on Series C Preferred stock (a)-(4,427)-(8,664)
Adjusted free cash flow$7,920$51,467$20,384$20,942


(1)Free cash flow represents the amount by which Cash flows provided by operating activities exceeds capital expenditures.
(2)Adjusted free cash flow represents the amount by which Free cash flow exceeds the following items:
a) Represents Series C Preferred stock dividends accrued during the period. All accrued preferred share dividends were paid concurrent with redemption of the preferred shares outstanding on December 31, 2024.

We believe that Free cash flow and Adjusted free cash flow are useful to investors evaluating our operating performance compared to that of other companies in our industry because these metrics provide key insights into the potential for growth and ability to generate returns for investors. Free cash flow and Adjusted free cash flow are not financial measures presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Free cash flow or Adjusted free cash flow in isolation or as a substitute for Cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Free cash flow and Adjusted free cash flow is not necessarily comparable to that of other similarly titled measures reported by other companies.


FAQ

What were FreightCar America's (RAIL) Q2 2025 earnings per share?

FreightCar America reported net income of $0.34 per share, with adjusted net income of $0.11 per share. The results included a $51.9 million benefit from a valuation allowance release.

How many railcars did FreightCar America deliver in Q2 2025?

The company delivered 939 railcars in Q2 2025, compared to 1,159 units in the same period last year.

What is FreightCar America's revenue guidance for 2025?

FreightCar America reaffirmed its fiscal year 2025 revenue guidance of $530-595 million, representing a 0.6% year-over-year growth at midpoint.

What was FreightCar America's order backlog at the end of Q2 2025?

The company ended Q2 2025 with a backlog of 3,624 units valued at $316.9 million, an increase of approximately 300 units from the previous quarter.

How much operating cash flow did FreightCar America generate in Q2 2025?

FreightCar America generated $8.5 million in operating cash flow and $7.9 million in adjusted free cash flow during Q2 2025.
Freightcar Amer Inc

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187.37M
14.11M
25.76%
45.34%
1.37%
Railroads
Railroad Equipment
United States
CHICAGO